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Q. How could phoenix activity be addressed?
A range of actions have been suggested to mitigate phoenix activity. These suggested actions were selected on the basis of:
- proportionality to the scale of the problem
- potential to mitigate phoenix activity
- feedback from stakeholders.
The suggested actions are primarily cross agency options (such as suggested actions 2-6). This reflects that the ATO, ASIC and FWO all work in the space of phoenix activity and any successful strategy to address phoenix activity will involve all the agencies. Suggested actions 7 and 8 are FWO specific options, which have been recommended due to the significant impact of 'phoenixing' on employees.
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Q. Establishing the scale and cost of phoenix activity? In 1996, the Australian Securities Commission (ASC, now ASIC) quantified the annual loss to Australian businesses due to
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